Friday, July 26, 2019

Analysis assignment - Essay Example The author has also done a comparison on some of the countries that are big players in international trade and how globalization boosts their level of income. The objective of the article was to prove that countries that specialize in international trade practices are better economically than those that choose autarky. Reading the article has helped me understand the difference in the economic gap as relates to different countries. Key players in the international trade practices such as Germany, U.S.A, and Mexico have been used to explain import and export trade. There are various economic risk factors that the countries have to analyze and determine when and where to engage in such trade practices. For instance, trading among such countries is not only dependant on their produce but also on the prices of goods from other nations. This therefore implies that they will buy goods when the environment is favorable and process them to sell them at a reasonable price. By the term favorable, it implies that the countries take advantage of the reduced prices in the global market, especially when there is a higher supply of the goods. United States, for instance, specializes in the transformation of raw products into processed ones, and hence getting a higher value of their imports. Once processed, the g oods are sold back to the global market, especially when the supply is low, and the demand is high. Technology plays a greater role in determining the success of a product in international market. Countries that have mastered the essence of technology in international trade use it to analyze factors that are likely to benefit their trading activities. The article has proved to me that having a successful economy is not about how much a country can produce but rather how well it can predict the economic environment. With such knowledge, it becomes easier to take up some economic risks by investing in machinery and even importing a product whose